Quarterly report [Sections 13 or 15(d)]

Restatement of Quarterly Financial Information (Unaudited)

v3.25.0.1
Restatement of Quarterly Financial Information (Unaudited)
 6 Months Ended
Jun. 30, 2024
Disclosure Text Block [Abstract]  
Restatement of Quarterly Financial Information (Unaudited)
13.
Restatement of Quarterly Financial Information

The following tables present the effect of the restatement on the Company's previously reported: unaudited condensed consolidated statements of operations and condensed consolidated statements of comprehensive loss for the three and six months ended June 30, 2023 and unaudited condensed consolidated statements of cash flows for the six months ended June 30, 2023. The values as previously reported were derived from the previously filed Quarterly Reports on Form 10-Q for the period ended June 30, 2023.

 

 

 

Three Months Ended June 30, 2023

 

 

Six Months Ended June 30, 2023

 

Unaudited Condensed Consolidated Statements of Operations

 

Notes

As Previously Reported

 

 

Restatement Adjustments

 

 

As Restated

 

 

As Previously Reported

 

 

Restatement Adjustments

 

 

As Restated

 

Revenue

 

(i)

$

26,493

 

 

$

1,572

 

 

$

28,065

 

 

$

50,661

 

 

$

621

 

 

$

51,282

 

Cost of revenue

 

(ii)

$

9,633

 

 

$

5,612

 

 

$

15,245

 

 

$

19,993

 

 

$

8,621

 

 

$

28,614

 

Gross profit

 

 

$

16,860

 

 

$

(4,040

)

 

$

12,820

 

 

$

30,668

 

 

$

(8,000

)

 

$

22,668

 

Research and development

 

(iii)

$

9,752

 

 

$

(2,097

)

 

$

7,655

 

 

$

19,415

 

 

$

(4,442

)

 

$

14,973

 

General and administrative

 

(iv)

$

10,899

 

 

$

(181

)

 

$

10,718

 

 

$

22,669

 

 

$

(128

)

 

$

22,541

 

Total operating expenses

 

 

$

27,852

 

 

$

(2,278

)

 

$

25,574

 

 

$

56,135

 

 

$

(4,570

)

 

$

51,565

 

Loss from operations

 

 

$

(10,992

)

 

$

(1,762

)

 

$

(12,754

)

 

$

(25,467

)

 

$

(3,430

)

 

$

(28,897

)

Foreign exchange loss

 

(v)

$

(435

)

 

$

(51

)

 

$

(486

)

 

$

589

 

 

$

(62

)

 

$

527

 

Other (expense) income, net

 

(vi)

$

(1,038

)

 

$

(92

)

 

$

(1,130

)

 

$

(1,800

)

 

$

359

 

 

$

(1,441

)

Total other income (expense), net

 

 

$

(5,061

)

 

$

(143

)

 

$

(5,204

)

 

$

(7,990

)

 

$

297

 

 

$

(7,693

)

Loss before income taxes

 

 

$

(16,053

)

 

$

(1,905

)

 

$

(17,958

)

 

$

(33,457

)

 

$

(3,133

)

 

$

(36,590

)

Income tax provision

 

(vii)

$

213

 

 

$

201

 

 

$

414

 

 

$

482

 

 

$

(45

)

 

$

437

 

Net loss

 

 

$

(16,266

)

 

$

(2,106

)

 

$

(18,372

)

 

$

(33,939

)

 

$

(3,088

)

 

$

(37,027

)

Basic and diluted net
   loss per share (1)

 

 

$

(0.88

)

 

$

(0.11

)

 

$

(0.99

)

 

$

(1.86

)

 

$

(0.17

)

 

$

(2.03

)

Weighted-average shares used
   in computing basic and
   diluted net loss per share (1)

 

 

 

18,468,949

 

 

 

-

 

 

 

18,468,949

 

 

 

18,283,958

 

 

 

-

 

 

 

18,283,958

 

Description of restatement adjustments in the condensed consolidated statements of operations:

(i)
The $1,572 and $621 increases in revenue for the three months and six months ended June 30, 2023, respectively, are related to the correction of revenue recognition for Space Services and R&D Services Contracts.
(ii)
Adjustments to cost of revenue:
a.
The $5,612 increase in cost of revenue for the three months ended June 30, 2023 resulted from an increase of $3,456 from construction costs for customer-controlled satellites for one specific contract being expensed to cost of revenue rather than capitalized into property and equipment, an increase of $2,097 from costs associated with R&D Services Contracts being reclassified from research and development expense to cost of revenue a, and an increase of $59 from the reclassification of supply chain department costs from general and administrative expense to cost of revenue.
b.
The $8,621 increase in cost of revenue for the six months ended June 30, 2023 resulted from an increase of $4,442 from costs associated with R&D Services Contracts being reclassified from research and development to cost of revenue, an increase of $4,100 from construction costs for customer-controlled satellites for one specific contract being expensed to cost of revenue rather than capitalized into property and equipment, and an increase of $79 from the reclassification of supply chain department costs from general and administrative expense to cost of revenue.
(iii)
The $2,097 and $4,442 decreases in research and development expense for the three months and six months ended June 30, 2023, respectively, are related to costs associated with R&D Services Contracts being reclassified from research and development expense to cost of revenue.
(iv)
Adjustments to general and administrative:
a.
The $181 decrease in general and administrative for the three months ended June 30, 2023 resulted from a decrease of $92 for the other state taxes reclassified from other expense, net, a decrease of $59 for the supply chain department costs reclassified to cost of revenue, and a decrease of $30 for the Delaware franchise tax accrual and reclassification.
b.
The $128 decrease in general and administrative for the six months ended June 30, 2023 resulted from a decrease of $408 for the Delaware franchise tax accrual and reclassification and a decrease of $79 for the supply chain department costs reclassified to cost of revenue, partially offset by an increase of $359 for the other state taxes reclassified from other expense, net.
(v)
The $51 and $62 decreases in foreign exchange losses for the three months and six months ended June 30, 2023, respectively, are related to the correction of revenue and cash remeasurement adjustment.
(vi)
The $92 and $359 change in other (expense) income, net for the three months and six months ended June 30, 2023, respectively, is related to the reclassification of other state taxes to general and administrative expense.
(vii)
The $201 increase and $45 decrease in income tax provisions for the three months and six months ended June 30, 2023, respectively, are related to the impact to income tax provision as a result of the revenue adjustments.

 

 

 

 

Three Months Ended June 30, 2023

 

 

Six Months Ended June 30, 2023

 

Unaudited Condensed Consolidated Statements of Comprehensive Loss

 

Notes

As Previously Reported

 

 

Restatement Adjustments

 

 

As Restated

 

 

As Previously Reported

 

 

Restatement Adjustments

 

 

As Restated

 

Net loss

 

 

$

(16,266

)

 

$

(2,106

)

 

$

(18,372

)

 

$

(33,939

)

 

$

(3,088

)

 

$

(37,027

)

Foreign currency
   translation adjustments

 

(i)

$

4,341

 

 

$

16

 

 

$

4,357

 

 

$

2,752

 

 

$

(9

)

 

$

2,743

 

Comprehensive loss

 

 

$

(11,932

)

 

$

(2,090

)

 

$

(14,022

)

 

$

(31,150

)

 

$

(3,097

)

 

$

(34,247

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Description of restatement adjustments in the condensed consolidated statements of comprehensive loss:

(i)
The $16 foreign currency translation gain and $9 foreign currency translation loss for the three months and the six months ended June 30, 2023, respectively, are related to the foreign currency translation impact of the condensed consolidated statements of operations adjustments (i) to (v) above.

 

 

 

 

Six Months Ended June 30, 2023

 

Unaudited Condensed Consolidated Statements of Cash Flows

 

Notes

As Previously Reported

 

 

Restatement Adjustments

 

 

As Restated

 

Net loss

 

 

$

(33,939

)

 

$

(3,088

)

 

$

(37,027

)

Other, net

 

(i)

$

(281

)

 

$

8

 

 

$

(273

)

Change in contract assets

 

(ii)

$

(1,506

)

 

$

199

 

 

$

(1,307

)

Other current assets

 

(iii)

$

263

 

 

$

(1,917

)

 

$

(1,654

)

Change in contract liabilities

 

(iv)

$

5,467

 

 

$

(819

)

 

$

4,648

 

Other accrued expenses

 

(v)

$

766

 

 

$

(407

)

 

$

359

 

Net cash used in
   operating activities

 

 

$

(22,591

)

 

$

(6,024

)

 

$

(28,615

)

Purchase of property and equipment

 

(vi)

$

(12,677

)

 

$

6,024

 

 

$

(6,653

)

Net cash used in investing activities

 

 

$

(10,122

)

 

$

6,024

 

 

$

(4,098

)

Effect of foreign currency translation on
   cash, cash equivalents and restricted cash

 

(vii)

$

597

 

 

$

(59

)

 

$

538

 

Cash, cash equivalents and restricted cash -
   Ending balance

 

 

$

43,627

 

 

$

(59

)

 

$

43,568

 

Description of restatement adjustments in the condensed consolidated statements of cash flows:

(i)
The $8 adjustment to change in other, net for the six months ended June 30, 2023 represents the change in deferred income tax liabilities related to the impact to income tax provision as a result of the revenue adjustments.
(ii)
The $199 adjustment to change in contract assets for the six months ended June 30, 2023 is related to the impact to short-term and long-term balances of contract assets from the correction of revenue recognition for Space Services and R&D Services Contracts.
(iii)
The $1,917 adjustment to other current assets for the six months ended June 30, 2023 resulted from an increase of $1,274 in prepaid launch costs for customer-controlled satellites for one specific contract that is capitalized into other current assets instead of property and equipment, and an increase of $643 from the net change in advances for fixed assets balance reclassified out of other current assets into property and equipment.
(iv)
The $819 adjustment to change in contract liabilities for the six months ended June 30, 2023 is related to the impact in contract liabilities from the correction of revenue recognition for Space Services and R&D Services Contracts.
(v)
The $407 adjustment to change in other accrued expense for the six months ended June 30, 2023 is related to the Delaware franchise tax accrual.
(vi)
The $6,024 decrease in purchase of property and equipment for the six months ended June 30, 2023 resulted from a decrease of $4,101 in costs incurred to build the customer-controlled satellites for one specific contract being expensed rather than capitalized into the Company's property and equipment, a decrease of $1,275 from prepaid launch costs for the customer-controlled satellites for one specific contract being reclassified into other current assets rather than capitalized into the Company's property and equipment, and a decrease of $648 from noncash addition to property and equipment from the prior period advances that were incorrectly reflected as current period’s cash purchase.
(vii)
The $59 decrease in cash and cash equivalents as of June 30, 2023 is related to the cash remeasurement adjustment for cash balances from certain foreign subsidiaries, which resulted in a $59 change in effect of foreign currency translation on cash, cash equivalents and restricted cash for the six months ended June 30, 2023.